A bout of volatility was witnessed in afternoon trade as the key benchmark indices trimmed gains only to regain strength. The barometer index, the S&P BSE Sensex, was up 130.48 points or 0.6%, off 100.44 points from the day's high and up 90.63 points from the day's low. The market breadth, indicating the overall health of the market, was positive. The BSE Mid-Cap index was up more than 1%. The market sentiment was boosted by data showing that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Friday, 14 March 2014. Gains in Asian stocks also boosted sentiment on the domestic bourses.
In auto pack, Mahindra & Mahindra (M&M) reversed direction after scaling record high. Shares of Maruti Suzuki India surged after the company and its Japanese parent Suzuki Motor Corporation modified terms of the Gujarat manufacturing plant to address Maruti shareholders' concerns. TVS Motor Company hit 52-week high. Index heavyweight and cigarette major ITC extended intraday gain. Engineering and construction major L&T reversed direction after hitting a 52-week high. IndusInd Bank gained after a bulk deal was executed on the scrip in opening trade on BSE today, 18 March 2014.
Among the side counters, Amtek Auto hit 52-week high. Crompton Greaves hit 52-week high. Cummins India scaled record high.
The market edged higher in early trade on firm Asian stocks. The Sensex and the 50-unit CNX Nifty, both, hit new record high. Key benchmark indices trimmed gains in morning trade. The Sensex fell below the psychological 22,000 mark after hitting record high above that mark in early trade. The Sensex further trimmed gains in mid-morning trade. The Sensex retained positive zone in early afternoon trade. A bout of volatility was witnessed in afternoon trade as the key benchmark indices trimmed gains only to regain strength.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 14 March 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 982.19 crore on Friday, 14 March 2014, as per provisional data from the stock exchanges. The stock market was closed on Monday, 17 March 2014, on account of Holi.
Asian stocks edged higher on Tuesday, 18 March 2014, as an improvement in US factory output boosted optimism for the world's biggest economy.
At 13:15 IST, the S&P BSE Sensex was up 130.48 points or 0.6% to 21,940.28. The index jumped 230.92 points at the day's high of 22,040.72 in early trade, a new record high for the barometer index. The index rose 39.85 points at the day's low of 21,849.65 in opening trade.
The CNX Nifty was up 40.45 points or 0.62% to 6,544.65. The index hit a high of 6,574.95 in intraday trade, a new record high. The index hit a low of 6,531.90 in intraday trade.
The BSE Mid-Cap index was up 76.03 points or 1.14% at 6,732.21. The BSE Small-Cap index was up 64.39 points or 0.97% at 6,692.07. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,468 shares rose and 1,107 shares fell. A total of 177 shares were unchanged.
The total turnover on BSE amounted to Rs 1503 crore by 13:15 IST.
ONGC (up 2.51%), SBI (up 2.45%) and Coal India (up 2.31%) edged higher from the Sensex pack.
HDFC (down 1.22%), TCS (down 0.71%) and Infosys (down 0.55%) edged lower from the Sensex pack.
Index heavyweight and cigarette major ITC advanced 2.09% to Rs 354.25, with the stock extending intraday gain. The stock hit high of Rs 354.85 and low of Rs 348 so far during the day.
Auto stocks were mixed. Shares of Maruti Suzuki India surged after the company and its Japanese parent Suzuki Motor Corporation modified the terms of the Gujarat manufacturing plant to address Maruti shareholders' concerns. The stock was up 7.94% at Rs 1,875.80. The scrip hit record high of Rs 1,899.90 in intraday trade. Maruti announced on Saturday, 15 March 2014, that the board of directors of the company reviewed the Gujarat project in the context of the views and opinions expressed and decided that the entire capex for the Gujarat project would be funded by depreciation and equity brought in by Suzuki Motor Corporation. In the event that both parties mutually agree to terminate the contract manufacturing agreement, the facilities of Suzuki's Gujarat subsidiary would be transferred to Maruti Suzuki India at book value. The impact of any direct or indirect taxes on account of the contract manufacturing agreement would be assessed before finalizing the agreement, Maruti said in a statement. As earlier stated, the Gujarat subsidiary would function on the basis that it would neither generate surpluses nor make losses, Maruti said. Further, the board of Maruti has decided to seek minority shareholders' approval as stipulated in Section 188 of the Companies Act 2013 for implementing the Gujarat project through a 100% subsidiary of Suzuki Motor Corporation.
M&M shed 0.63% to Rs 1,019.25, with the stock reversing direction after hitting a record high of Rs 1,054 in intraday trade.
Tata Motors fell 1.35%. Ashok Leyland rose 1.43%.
Bajaj Auto rose 0.78%. Hero MotoCorp declined 1.15%.
TVS Motor Company gained 3.47% to Rs 89.50 after hitting a 52-week high of Rs 91.25 in intraday trade.
Engineering and construction major L&T fell 0.75% to Rs 1,246.10, with the stock reversing direction after hitting a 52-week high of Rs 1,267 in intraday trade.
Crompton Greaves surged 6.41% to Rs 157.60 after hitting a 52-week high of Rs 159.25 in intraday trade. Shares of Crompton Greaves had gained 4.63% to settle at Rs 148.10 on Friday, 14 March 2014. With reference to the news item appearing in a financial daily titled "Thapar Puts Avantha Powerhouse Crompton Greaves on the Block", Crompton Greaves had during market hours on Friday, 14 March 2014, clarified that the company was not been informed or are aware on the rumored stake sale by the promoters of the company. "We are not aware for the reasons on the movement in the company's stock but do confirm that there is no information that merits disclosure under Clause 36 of the Listing Agreement by the company, available with the company presently", Crompton Greaves had said in a statement.
Cummins India advanced 5.86% to Rs 577.50 after hitting a record high of Rs 592 in intraday trade.
IndusInd Bank gained 2.66% to Rs 480.30 after 0.23% equity changed hands in a bulk deal on BSE today, 18 March 2014. A bulk deal of 12.50 lakh shares was executed on the IndusInd Bank scrip at Rs 471.70 per share in opening trade on BSE today, 18 March 2014.
Amtek Auto jumped 16.83% to Rs 135 after hitting a 52-week high of Rs 137.80 in intraday trade.
In the foreign exchange market, the rupee edged higher against the dollar as equities rose. The partially convertible rupee was hovering at 61.0250, compared with its close of 61.19/20 on Friday, 14 March 2014. Indian financial markets were closed on Monday, 17 March 2014, on account of Holi.
The government has extended the last date for payment of final installment of advance tax for financial year 2013-14 to 18 March from 15 March earlier. "To facilitate payment of final installment of advance tax for the financial year 2013-14, the Central Board of Direct taxes (CBDT) has issued an order to extend the time limit to make such payments of advance tax, from 15 March to 18 March," the finance ministry said in a statement.
The Reserve Bank of India on Friday, 14 March 2014, said it has completed a switch operation of Government of India securities, wherein swapping of securities from 2014-15 and 2015-16 maturity buckets for a face value of about Rs 4400 crore to a longer tenor security, was conducted with an institutional investor on 13 March 2014. It may be recalled that a similar switch operation for a face value of about Rs 27000 crore was conducted with another institutional investor in the last week of January 2014 and hence, the aggregate face value of securities swapped to a longer tenor security in these two operations amounted to about Rs 31000 crore in 2013-14 so far, the RBI said. The Union Budget 2013-14 has provided Rs 50000 crore for buyback/switching.
The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Citing price pressures, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
The next major trigger for the stock market is the outcome of the upcoming Lok Sabha elections. Lok Sabha elections will be held between 7 April 2014 and 12 May 2014 in nine phases. The counting of votes will be take place on 16 May 2014. The term of the current Lok Sabha expires on June 1 and the new House has to be constituted by May 31. Along with the Lok Sabha election, Andhra Pradesh (AP), including the regions comprising Telangana, Odisha and Sikkim will go to polls to elect new assemblies. AP, Odisha and Sikkim assemblies come to end on June 2, June 7 and May 7 respectively.
Asian stocks edged higher on Tuesday, 18 March 2014, as an improvement in US factory output boosted optimism for the world's biggest economy. Key benchmark indices in South Korea, Taiwan, Hong Kong, Japan and China rose 0.08% to 0.94%. Key benchmark indices in Singapore and Indonesia fell 0.23% to 1.41%.
New-home price growth in China slowed last month, led by the four Chinese cities the government defines as first tier, amid tighter credit to rein in excessive borrowing and individual city measures to curb property prices.
Trading in US index futures indicated that the Dow could fall 7 points at the opening bell on Tuesday, 18 March 2014. US stocks surged on Monday, 17 March 2014, as investors shrugged off the narrow scope of EU and US sanctions following the vote in Crimea in favor of leaving Ukraine. Industrials and technology stocks lead broad-based gains after better-than-expected economic data, including industrial production and manufacturing activity in the New York region. However, stocks rose amid the lowest trading volumes this year.
Factory production in the US rose in February by the most in six months, indicating the industry started to recover from severe winter weather. The 0.8% gain at manufacturers followed a revised 0.9% slump in the prior month that was the biggest since May 2009, figures from the Federal Reserve showed. A separate gauge of manufacturing in the New York area rose less than forecast last month, climbing to 5.61 from 4.48. Separately, a gauge of confidence among home builders ticked up in March, but remained close to the lowest level since May and signaled that builders, generally, are pessimistic about sales trends.
A two-day meeting of the Federal Open Market Committee (FOMC) for monetary policy review begins today, 18 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion.
European Union foreign ministers on Monday, 17 March 2014, agreed to freeze assets and impose visa bans on 21 Russian and Crimean political figures, while the US put similar sanctions on seven Russian government officials and four Ukrainians, including former President Viktor Yanukovych, who was ousted after protests last month. Russian President Vladimir Putin responded by recognizing Crimea as a sovereign state.
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